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Transport of Light Gases Blended with LNG. LNG Transport Industry Summary. LNG Production Worldwide. LNG Production Worldwide. Large, Global Market. LNG shipping capacity 60 Million cubic meters ( 25.4 Million Tonnes) in 2012 LNG annual transport
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LNG Production Worldwide
LNG Production Worldwide
Large, Global Market LNG shipping capacity 60 Million cubic meters ( 25.4 Million Tonnes) in 2012 LNG annual transport 562 Million cubic meters (237.7 Million Tonnes) in 2012
Shipping LNG:Supply & Demand LNG Tankers – Plentiful, Many Sizes LNG Sources – Growing Number LNG Receiving – Slowly Growing Number Limited Excess Capacity Oversupply in 2008 has virtually disappeared Lower gas cost has seen increase in LNG transport by about 40% since 2008 US Gas Supply Increasing Promising Substantial LNG Exports within a decade
Growing Industry & Transport Capacity • 226 ships built through 2006 • 163 ships built in 2007 through 2013 • 46 ships planned for delivery in 2014 or later
Cost of Transporting LNG Transport of Natural Gas costs about $3.50/MSCF using LNG from source to destination (5000 km) Natural Gas sells for about $4 to $16/MSCF ($200 to $800/tonne) Natural Gas can be bought for $1 to $4/MSCF Profit highest transporting to Far East from Middle East
Blended LNG Transport of Valuable Gases: Ethylene, Ethane, Propylene
Ethylene: Prime Raw Material for Chemicals Traditionally made from Ethane and Naphtha Cracking Ethane reserves are falling except in USA Ethane Uneconomical for Shipping as Gas Naphtha easily shipped to Manufacturers (has destination value) All Major Future Ethylene Production Growth in Africa, Middle East and Far East
New Ethylene Technology Synfuels GTE makes Ethylene from Low Cost Natural Gas Economically GTE Ethylene market needs: Local Chemical Industry Mode of Transport to Traditional Market
Destination Value of Gases Methane - $200 to 800/tonne Ethylene - $1100 to $1600/tonne Propylene – $1600 to 2000/tonne
Ethylene Transport Cycle Matches LNG Chemicals made from Ethylene Few Changes to Existing LNG Facilities are Needed Cryogenic Separation of Ethylene from LNG
Handling Ethylene/LNG Blend LNG Gasification Facilities Gasify LNG and Deliver Natural gas to Pipelines Ethylene/LNG Gasification Facility will Separate Ethylene from Methane Deliver Natural Gas to Natural Gas Pipeline Deliver Ethylene to Ethylene Pipeline
Liquifaction Equipment Additions are Minimal Pipeline from Ethylene source to LNG Liquifaction Plant Cross exchanger for Ethylene/LNG Pumps to Move Blend to Storage Tank Optional Separate Storage Tank for Cryogenic Blend
Gasification Equipment Additions are Minimal Cryogenic Tower to Separate Ethylene from Natural Gas Cold Box Condenser Fin-Fan Air-heated Reboiler Ethylene Pipeline Extension at Destination
Example Case – Load Value Ship Size – 138,000 cu meters 58320 tonnes displacement* 100% Methane - $ 35.0 Million 75 wt% Ethylene - $ 63.4 Million 75 wt% Propylene - $ 95.1 Million All examples above for equal displacement shipping from USA to Japan Cost to manufacture ethylene and propylene set at $350/tonne
Market Opportunityis Enormous LNG shipping capacity – 60 Million cubic meters ( 25.4 Million Tonnes) LNG annual transport – 562 Million cubic meters (237.7 Million Tonnes) Worldwide Ethylene Production – 143.4 million tons per year (252 Million cubic meters)
Opportunity A(Add Synergy to Close Ethylene and LNG plants) Bring ethylene by pipeline to site of existing LNG Liquifaction Plant Cool and liquify the ethylene with existing LNG refrigeration Load the ethylene and LNG separately on a slightly modified LNG tanker Unload the ethylene at the ethylene receiving site Unload the LNG at the LNG receiving site
Load some LNG onto LNG Tanker from LNG production site Move ship to distantethylene production site and load refrigerated ethylene into separate LNG cooled storage Unload the ethylene at the ethylene receiving site Unload the LNG at the LNG receiving site Opportunity B (Utilize far apart LNG and ethylene plants)
Opportunity C Bring ethylene by pipeline to site of existing LNG Liquifaction Plant Cool and liquify the ethylene with existing LNG refrigeration Blend the ethylene with LNG and ship in existing LNG tanker Separate blend at receiving site (Simplify Transport through Blending)
Potential GTE/LNG Sites Co-Locations of Ethylene production and LNG Loading (Blue) and Receiving (Green)